THE FUTURE of the trouble-stricken Summerhall venue continues to be in doubt as its court case with HMRC is to continue for another three months.
The ruling on Friday is the latest development in the legal proceedings, which kicked off when the Edinburgh venue was issued with a winding up petition.
HMRC claims Summerhall Management Ltd has failed to pay £500,000 in corporation tax, with the charge applying to trading profits, investments and chargeable gains.
With the company’s accounts remaining frozen until February, artists who performed at the venue during August’s Festival Fringe are still awaiting their box office takings.
Director Robert McDowell established Summerhall, which occupies the former Royal (Dick) School of Veterinary Studies overlooking the Meadows, in 2011 when his family acquired the site.
It is home to over 100 businesses and featured a programme of 108 shows at this year’s festival.
It was threatened with closure after being listed for sale in May 2024, with the possibility of redevelopment as a hotel or student accommodation.
McDowell claimed it was put on the market against his wishes by his brothers, who are co-beneficiaries of the family trust.
However, it was saved after a charity, set up separately to take over events at the venue, offered a new three-year lease in July.
Just three months later, it was hit with the winding up petition by HMRC, which if successful could force the company into liquidation and close the venue.
McDowell denies that any corporation tax is owed and insists that the levy is only owed on profits.
In a statement issued after the ruling, he said the issues can be put down to an “accounting error” made over a decade ago.
With the latest decision, it is still unclear when performers will receive their festival takings, with some awaiting payouts of up to £15,000.
Some rely on these funds to put towards future shows or replace personal savings invested into putting on a run at the Fringe.
McDowell’s statement issued on Friday read: “At the court hearing today, 29 November, the Sheriff continued the case until 14 February.
“I was not expecting this to be the outcome and will now need to take some time to consult with Summerhall Management’s professional advisors and map out our next steps over the coming days.
“Summerhall Management Limited has been placed in limbo for a further three months and our bank accounts remain frozen, making it impossible to pay artists the box office receipts they are owed.
“A result either way would at least have enabled some certainty. The team have updated the Fringe Society with the result of today’s hearing.
“Whilst I am confident that there is no corporation tax due I will now look at any and all options available to me that offer the best outcome for my staff, the Fringe companies and other stakeholders who are affected.
“I established Summerhall to help and support artists in our city, and especially during the Fringe.
“That it has come to this because of an accounting error made over 10 years ago causes me great personal pain and anguish and I would like to apologise to everyone who has been affected by the current situation.
“I will make a further statement early next week following detailed discussion with Summerhall Management’s professional advisors.”
